AB-893 California Renewables Portfolio Standard Program.(2017-2018)

SECTION 1.

Section 399.35 is added to the Public Utilities Code, to read:

399.35.

(a) Each retail seller and local publicly owned electric utility shall procure a proportionate share of electricity products from a statewide total of 3,000 megawatts of geothermal generation capacity from projects for which construction began before, on, or after January 1, 2019, that meet the requirements of paragraph (1) of subdivision (b) of Section 399.16.

(b) No later than June 30, 2020, the commission, in consultation with the Energy Commission, shall determine the proportionate share of electricity products from the 3,000 megawatts of electricity that each retail seller and local publicly owned electric utility is required to procure pursuant to subdivision (a). For purposes of this section, “proportionate share” shall be based on the forecast of retail sales for the year 2021.

(c) No later than December 31, 2020, each retail seller shall file with the commission a plan for complying with subdivision (a). Those plans shall require each retail seller to procure at least one-half of its proportionate share by December 31, 2021, with deliveries of electricity products from that half of its proportionate share scheduled to commence no later than January 1, 2022, and shall require the other half of its proportionate share to be procured pursuant to contract with deliveries of electricity products scheduled to commence no later than January 1, 2030. Those plans may authorize a retail seller to aggregate its proportionate share with the proportionate share of another retail seller or local publicly owned electric utility in order to minimize administrative and contracting costs. A retail seller may procure its proportionate share by executing new contracts or by maintaining, extending, or renewing existing contracts for the purchase of electricity products from geothermal powerplants, so long as the retail seller continues to procure its share of these electricity products through the conclusion of the compliance periods set forth in paragraph (1) of subdivision (b) of Section 399.15. The commission shall, no later than June 30, 2021, review and approve, modify, or reject plans filed by retail sellers. A retail seller shall not be deemed out of compliance with the requirement of subdivision (a) if, after the commission’s approval of the plan filed pursuant to this subdivision, a counterparty to a contract providing for deliveries of electricity products scheduled to commence no later than January 1, 2022, fails to commence delivery of the contracted electricity products by that date without fault of the retail seller.

(d) No later than December 31, 2020, each local publicly owned electric utility shall adopt, as part of the renewable energy resources procurement plan required by subdivision (f) of Section 399.30, a plan for complying with subdivision (a) by procuring at least one-half of its proportionate share by December 31, 2021, with deliveries of electricity products from that half of its proportionate share scheduled to commence no later than January 1, 2022, and by procuring the other half of its proportionate share through contracts with deliveries of electricity products scheduled to commence no later than January 1, 2030. A local publicly owned electric utility may aggregate its proportionate share with the proportionate share of another local publicly owned electric utility or retail seller in order to minimize administrative and contracting costs and may procure its proportionate share by executing new contracts or by maintaining, extending, or renewing existing contracts for the purchase of electricity products from geothermal power plants, so long as the local publicly owned electric utility continues to procure its share of these electricity products through the conclusion of the compliance periods set forth by subdivision (b) of Section 399.30. A local publicly owned electric utility shall not be deemed out of compliance with the requirements of subdivision (a) if, after adoption of a plan pursuant to this subdivision, a counterparty to a contract providing for deliveries of electricity products scheduled to commence no later than January 1, 2022, fails to commence delivery of the contracted electricity products by that date without fault of the local publicly owned electric utility.

(e) Electricity procured by a retail seller or local publicly owned electric utility pursuant to this section shall count toward meeting the requirements specified in subparagraph (B) of paragraph (2) of subdivision (b) of Section 399.15 or subdivision (c) of Section 399.30, as applicable.

(f) Projects generating electricity procured under this section for which construction began on or after January 1, 2019, shall demonstrate an environmental benefit and an economic benefit to California communities located within the boundaries of, and an environmental and an economic benefit to individuals living in, disadvantaged communities described in Section 39711 of the Health and Safety Code. Environmental benefits may include, but are not limited to, reducing air pollution from oxides of nitrogen, particulate matter 2.5 microns and smaller in size, or fugitive dust, or enabling the production of lithium. Economic benefits may include, but are not limited to, creating high-quality jobs.

(g) (1) The procurement expenditure limitations described in subdivision (c) of Section 399.15 shall apply to procurement by retail sellers pursuant to this section.

(2) The commission shall allow for recovery of the costs of the procurement required by this section by retail sellers from all benefiting consumers.

(h) Any cost limitations adopted by the governing board of a local publicly owned electric utility pursuant to subparagraph (B) of paragraph (2) of subdivision (d) of Section 399.30 shall apply to procurement by the local publicly owned utility pursuant to this section.

(i) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 2.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.